Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1887-02-10
INCOME AND EXPENDITURE.

sIJIeSs
WASHINGTON, Feb. s.-The Senate, shortly
after one o'clock, resumed consideration of the
Sundry Civil Appropriations bill.
Mr.. Allison, chairman of the committee on
appropriations, said that the Senator from
Connecticut (P1att) had inquired of him yester-
day whether or not there would be Il surplus
in the treasury in case Congress made appro-
priations in accordance with the estimates of
the departments. In his desire to complete the
bill last night he had failed to answer that
inquiry as fully he might have done. The
regular estimates Of the department ts
as submitted by the Secretary of the
Treasury. amounted lin round numbersi
to s376, 100000. Since that time there
had been supplementary and other
estimates amounting to a considerable sum-
For example, there an estimate of near
~ IS, 100000 to carry out the provisions of the
Mexican Pension bill. No estimate had been
yet submitted. AS to the Disabilities Pension
BILL which both houses had passed, but which
had not yet received the signature of the Presi-
dent, 1t was safe to assume however, that
seven or eight million dollars would be re-
quired for that purpose. Then there had been
already submitted estimates for DEFICIENCIES
amounting to seven millions more. So that the
total Of the estimates for the next fiscal year
(without including miscellaneous appro-
priations) amounted to 1896. 1000 He
thought it safe to assume, however, that
Congress, would not appropriate fully up to
the estimates. In further reply to Mr.. Platt.
NIL Sdiu CStiIIldtSS Ne'iC III "a
cess of estimates hitherto made by the depart
ments in similar cases, and were perhaps in ex-
cess of the immediate necessities of he Gov
eminent.
Mr.. Platt-Do these estimates of 1896, 900 900
include any considerable amount for coast de-
lenses?
Mr.. Allison-They include S., 100000 for forti-
fcations. The total navy estimate is $40, 600 900,
so that assume that these estimates do not in
clude what we would regard as sufficient ex-
penditure for coast defenses or the nary if we
should enter on that subject,
Mr.. Platt-Fve million dollars for fertiGca-
tions is practically nothing.
Mr.. Wilson 1a)-Does this 1895, 900 900 in
clude the amount that is to be laid aside for the
sinking fund?
Mr.. Allison-That is included.
Mr.. Platt-So that if Congress should deem
1t necessary to expend a larger sum than
s. 900, 600 for coast defenses that larger
would increase the estimates beyond 1895, 00O,
900?
Mr.. Allison-Yes; and if we should appropri-
ate more than so, 1900 for the navy that over
appropriation must be added. The bill
passed by the House does appropriate $e2, Co.,
GOO. Now, as to the receipts for
the year ending June 80 1896 They were
1896, as stated by the Secretary of the
Treasury in his message, but that does not in
clude the receipts from postal revenue. and
those receipts must be added to the 1885,
O0O,O0O. For the year 1886, the postal revenue
was 81, ,0O0 that the receipts for last year
amounted to $3.50, 10000. This year the Post
master General estimates that the postal
revenues will be fifty million dollars. think
in view of the actual receipts of last year that
it is high estimate. I do not believe they will
reach $50000,0O0. But assuming that they will,
and assuming that the ordinary revenues of
the Government are what they were last year
1896 600. 09O). then have in round numbers
S:}S6,0000oD as the gross receipts for the fiscal
wear 1SS1-SS. These receipts will not be
imports. I mean that whatever increase Of
receipts there may be will have TO come from
customs receipts. The customs receipts for the
year 1886 We're 1892, 100000. For the first six
months of this fiscal year they amounted te
SIT 000,OOn SO that there has been an increase OF
between ten and eleven millions in the first six
months of this year, compared with the
same period last year Assuming that that in,
crease continues throughout the fiscal year.
the amount from customs duties for the cur
rent year will be S214 100000 The total receipts
of revenue for the first half Of this fiscal year
amount to S1S1,0OG0tO, so that if that rate con-
tinues we will have a total revenue OF $1,000,
for this current year, compared with 1886,
OO0O00 for the last fiscal year. In these esti-
mates for the current year I do not include
postal receipts. nor are they included in the
1896 000.On6 for lust year, that we will have
$500 o0n,000 of receipts and an expenditure Of
S395 900, 600
Mr.. Morrill-Do you not think that we ought to
make some difference between the first half OF
the fiscal year and the last half? think that
the receipts from customs are usually much
larger in the first half than in the second half
Mr.. Ailisou-It happens sometimes, and
sometimes the reverse happens. l take the
receipts, therefore. $780, 1900 for next year
Add the estimated postal revenue, and the
receipts will be S4t0,00o,000. Then if take
the estimates OF expenditures suggested by
the Senator from Connecticut Q'latD as the
measure of our expenditures OF 1878 ito which |
should be added the amount of pension legisla- |
tion), we have total expenditure of 1885,, 000 |
G0o, which will make the surplus (being the
question asked by the Senator from Con- |
necticut) S15.G00, Gee IF comply with the |
law in relation to the sinking fund. then we |
are compelled to buy bonds in the open market, |
either four and one-half or four per cent bonds |
or the currency SKIES issued to Pacific rail- |
roads.
Mr. Teller-Why does the Senator say 'if |
we comply with the sinking fund law Is not |
that law imperative? Can there be any ques- |
ton but that the Government will provide &C |
cording to law for the sinking fund?
Mr.. Allison-There is a question whether the |
Government is bound to purchase its own bonds
in the open market at a large premium for the
purpose of complying with the sinking fund re-
quirement, while in fact the sinking fund is
now over 1900 0OO, 900 in excess of the require
ments
Mr.. Teller-The Sinking-Fund act provides
not for total amount, but for so much each
year.
Mr.. Allison-In my Judgment the Govern
ment is not bound by law, or in good faith to
the bondholders to purchase at premium
bonds that not yet due, while the sinking
fund, projected for the benefit of the bond
holders, is more than three hundred millions in
advance Of the general requirements of the
Sinking Fund law. While admit that the let
ter of the law requires the setting apart of one
per cent of the total debt each year, still that
is requirement which can be set aside by law
in good faith. IT is question whether or not the
promoters of that law intended the Govern
ment should go into the open market and pay
premium of twenty ght per cent. for its bonds
in order to comply with that provision.
Mr.. Ingalls-How does it happen (the law be-
ing imperative as to the annual amount to be
set aside for the sinking fund.- that that fund
is now three hundred millions in excess of the
amount which should be held for the purpose?
Mr. Allision-That is question of arithmetic
which the Senator can solve for himself The
law requires one per cent. to be set apart an
nually for a sinking fund.
Mr.. Ingalls-No more and no less.
Mr.. Allison-It does not say no more and no
less. implicitly it must be no less. Now the
Government has purchased and put in the
sinking fund sum largely in excess of the
amount required by that one per cent. provis-
ion, and has done so for many years,
Mr.. Beck-The Senator from Iowa can answer
that question by saying that Congress passed
an additional law authorizing the Secretary of /
the Treasury to purchase bonds payable with
any surplus revenue he had. That made the
excess.
Mr.. Allison-That is very good answer,
although the law did not require that excess to
be put in the sinking fund.
Mr.. Platt-I glad to have listened to this
very soothing exposition of the prospective
revenues and expenditures for the next fiscal
Tear. 1 understand from it that if Congress
makes the appropriations that are really
needed according to the estimates submitted
~ the departments there Will not be surplus